Contingent Liabilities Arise from Past Transactions,but Depend on Future Events

question 207

True/False

Contingent liabilities arise from past transactions,but depend on future events.

---

Definitions:

SUTA Tax

State Unemployment Tax Act tax, which is a state-based tax that employers pay to fund the unemployment benefits for workers who lose their jobs.

Sales Taxes Payable

Liability accounts that record the sales tax collected from customers on behalf of governmental authorities, to be paid in the future.

Cash Sales

Sales transactions where payment is made in cash at the time of purchase, without any delay.